Tehran, Iran, Aug.21
Trend:
The head of Iran Planning and Budget Organization stated that the budget reform is to be implemented to create legal financial document that will help avoid the government unreal debts.
"Planning and Budget Organization is responsible to implement reform in budget structure in the budget law in the next Iranian year [starts March 21, 2020]," said Mohammad Bagher Nobakht, Trend reports citing IRNA.
"The Sixth Development Plan has been drafted within the Joint Comprehensive Plan of Action, and considering the necessity to reform budget structure, the document is important," he stated during the session on the next year budget.
"It's necessary that the regulations based on the reform plan are followed precisely. Registering the financial obligations of executive organization is based on identification of legal person or individual claiming the debts, while Planning and Budget Organization will supervise the direct debt payments by treasury to these beneficiaries," he noted.
"The Planning and Budget Organization is cooperating with other executive organizations and the treasury to classify general budget payment," he added.
Iran has recently issued an announcement for implementation of barter system for government debts to legal and individual entities in the private sector. The announcement is aimed to clear the government debts to the legal and individuals in the private sector via direct barter with the government or through banks that are in debt to the Central Bank of Iran.
Another official of the Planning and Budget Organization emphasized importance of monitoring the government commitments and debt payment by equipping the organization with necessary sources.
"Control is important in this process, financial commitments of the government is beyond current sources, which should be changed," said Mojgan Khanlou.
"While the issue of lack of certainty over the budget payment and capacities of executive organizations in planning shall be addressed, transferring liquidity risk to other organizations as responsible bodies for budget execution is another problem that needs to be resolved," she added.